Item 19 - Appropriation Adjustment and Agreement for MacArthur Street Improvements

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WHEREAS, once completed, the improvements will enhance the streets’ drivability, visual appearance, accessibility, and drainage, NOW, THEREFORE, based upon the foregoing Recitals, and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by all Parties, the Parties agree as follows: 1.Mesa Water shall perform and/or contract for the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the Project. As a material component of this Agreement, City will reimburse Mesa Water for the costs associated with the Project area square footage identified in Project Location Map (Exhibit A) and Cost Estimate (Exhibit B) (the “City Contribution”) in an amount equal to 30% of the total completed construction costs plus administrative costs of the Project, but in no event shall City’s 30% share exceed $897,000 or Mesa Water’s share exceed $1,949,000, as detailed in Exhibit B. Should Mesa Water receive grant funding applicable to the Project cost, such funds will be allocated to the total construction costs of the Project and each Party's share of construction costs funding shall be proportionately reduced. Any offset to the Project costs due to the receipt of grant funding shall require Mesa Water to refund each Party's proportional share of the construction costs, as may be reduced by such grant funding. 2.Mesa Water is responsible for initially funding that portion of the Project within the City limits, as set forth in Exhibit B. Upon completion of the Project, Mesa Water will provide the City with a copy of the completed and filed Notice of Completion. Mesa Water shall provide the City with an accounting of all Project costs and shall provide copies of contract invoices and related documentation upon request. Within forty-five (45) days of receipt of such Project costs accounting the City shall provide payment to Mesa Water of 30% of the Project construction costs. 3.Mesa Water will act as the Project lead and organizer, and is responsible for design, bidding, and construction administration of the Project. 4.City will coordinate the relocation of all affected utility company facilities within the City limits to facilitate the completion of the Project in a timely manner. 5.City and Mesa Water shall extend to each other cooperation and proceed under this Agreement in a good faith manner to facilitate timely completion of the Project and comply with the terms hereof. The Parties agree that when any component of this Project is subject to the approval of the City or Mesa Water, such approval shall not be unreasonably withheld. 6.City will issue a new Permit applicable to Project work (“Project Permit”). The 2021 Permit may be closed upon action by the Mesa Water Board of Directors (“Mesa Water Board”) of a construction contract for Project work. Such Project Permit will be promptly issued at no cost to Mesa Water or its contractor. 2